Provided by Summit Financial Advisors
Here is what you need to know
Financially, many of us associate the spring with taxes – but we should also associate December with important IRA deadlines. This year, like 2021, will see a few changes and distinctions.
December 31, 2022, is the deadline to take your Required Minimum Distribution (RMD) from certain individual retirement accounts.
April 18, 2022, is the deadline for making 2021 annual contributions to a traditional IRA, Roth IRA, and certain other retirement accounts. This extension from the traditional April 15 deadline follows an extension of the traditional tax deadlines.1
Some people may not realize when they can make their IRA contribution. You can make a yearly IRA contribution between January 1 of the current year and April 15 of the next year. Accordingly, you can make your IRA contribution for 2022 any time from January 1, 2022 to April 15, 2023.1
A person can open or contribute to a Traditional IRA past age 70½ as long as they have taxable income.
If you are making a 2021 IRA contribution in early 2022, you must tell the investment company hosting the IRA account for which year you are contributing. If you fail to indicate the tax year that the contribution applies to, the custodian firm may make a default assumption that the contribution is for the current year (and note exactly that to the I.R.S.).
So, write “2021 IRA contribution” or “2022 IRA contribution,” as applicable, in the memo area of your check, plainly and simply. Be sure to write your account number on the check. If you make your contribution electronically, double-check that these details are communicated.
To schedule time with a Summit Financial Advisor for help, call 800-236-5560, Ext. 4012 or online.
Citations
1. irs.gov, November 5, 2021
Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Summit Credit Union and Summit Financial Advisors are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Summit Financial Advisors and may also be employees of Summit Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entites from, and not affiliates of, Summit Credit Union or Summit Financial Advisors. Securities and insurance offered through LPL, or its affiliates are:
